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Growth, Trade, and Deindustrialization
Author:
Mr. Ramana Ramaswamy
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and
Mr. Bob Rowthorn null

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Series:
IMF Working Papers
Volume/Issue:
Volume 1998: Issue 060
Language:
English
Publication Date:
01 Apr 1998
DOI:
https://doi.org/10.5089/9781451848021.001
ISBN:
9781451848021
ISSN:
1018-5941
Pages:
28
Keywords:
WP; income elasticity; productivity growth; trade balance; Deindustrialization; North-South trade; per capita income; dependent variable; demand-creating effect; output equation; productivity change; income coefficient; labor-saving impact; productivity trend; Manufacturing; Employment; Productivity; Personal income; Labor productivity; East Asia
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper shows that deindustrialization is explained primarily by trends internal to the advanced economies. These include the combined effects on manufacturing employment of a relatively faster growth of productivity in manufacturing, the associated relative price changes, and shifts in the structure of demand between manufactures and services. North-South trade explains less than one fifth of deindustrialization in the advanced economies. Moreover, the contribution of North-South trade to deindustrialization has been mainly through its effects in stimulating labor productivity in Northern manufacturing. It has had little enduring effect on total manufacturing output in the advanced economies.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund